Greg Abel, chief executive of Berkshire Hathaway, oversaw a reshuffle of the conglomerate's investment portfolio in the second quarter of 2024. The changes saw a sharp rise in the company's stake in Alphabet, the parent of Google, alongside new positions in homebuilders, and a pull-back from several financial and consumer firms.
Alphabet investment swells to nearly $38bn
In June, Berkshire added roughly 48.1 million shares of Alphabet, taking its total to about 106 million shares. The filing values the holding at $37.76 billion as of 30 June, up from 17.8 million shares worth $5.6 billion at the end of December. The expansion follows a $10 billion commitment made earlier in the year to deepen Berkshire's exposure to the tech giant.
Homebuilder holdings grow
The portfolio also saw a near-30 percent increase in Berkshire's stake in homebuilder Lennar. A modest new position in D.R. Horton was recorded at a value of $580,504 at quarter-end. In July, the conglomerate completed a $6.8 billion acquisition of another builder, Taylor Morrison, further cementing its presence in the U.S. housing market.
Other sector moves
Shares in Delta Air Lines and Macy's rose to about $5.37 billion and $173 million respectively. At the same time, Berkshire trimmed its holdings in several companies, including supermarket operator Kroger, steelmaker Nucor and dialysis provider DaVita.
Complete exit from Constellation Brands and reduced bank exposure
The filing shows Berkshire sold all 632,890 shares of beverage group Constellation Brands. Its positions in financial firms also fell: stakes in Bank of America and Ally Financial slipped by around 6 percent, while holdings in Capital One Financial were cut by 58 percent.
Why the shifts matter
Investors watch Berkshire's moves closely, often using them as a barometer for broader market sentiment. The heightened focus on Alphabet signals confidence in the tech sector's growth, particularly around artificial-intelligence infrastructure, while the retreat from banks and consumer staples may reflect a reassessment of risk amid changing economic conditions.
What comes next
Although Berkshire Hathaway does not comment on quarterly portfolio adjustments, the pattern suggests a continued emphasis on high-growth technology and housing assets. Market participants will likely monitor future filings for further clues about the conglomerate's strategic direction under Abel's leadership.